ATO widens tax haven probe
The Australian Taxation Office (ATO) has increased its scrutiny of the misuse of offshore tax structures and tax havens by Australian residents, according to tax commissioner Michael D’Ascenzo.
He warned residents yesterday against “hiding income or assets in offshore structures or tax havens”, claiming there will be “no place to hide undisclosed income” under the new initiative.
“People who use offshore structures to deliberately hide assets or income in tax havens can face serious penalties, including criminal prosecution,” he said.
His warning follows an ATO announcement last month that it is investigating tax evasion and avoidance by Australian residents via legal structures in Liechtenstein.
Taxpayers needed to be “cautious when considering whether to use offshore structures or tax havens, including Liechtenstein, for abusive purposes”, D’Ascenzo reiterated yesterday.
“Australian residents have tax obligations for their worldwide income, including Australian and overseas sources, such as profits from tax haven entities and bank accounts.”
However, D’Ascenzo said residents who “contact the ATO before they are the subject of an audit may be entitled to substantial reductions in shortfall penalties under our offshore voluntary disclosure initiative”.
Recommended for you
Advice firms are increasing their base salaries by as much as $50k to attract talent, particularly seeking advisers with a portable book of clients, but equity offerings remain off the table.
MLC Expand has appointed retirement specialist Andrew Long to work with advisers and licensees and drive growth for its recently launched retirement solution.
Despite banks largely having exited the industry, advisers under institutional licensees are least likely to switch while 26 advisers have been appointed to a licensee more than 10 times.
Insignia Financial has shared a progress update on the acquisition by US private equity firm CC Capital as well as the departure of a long-standing director.
